Delhi government to phase out Blueline buses, permit corporatised Star Bus fleet

The capital's killer buses operated under the Blueline branding may, mercifully, be on their way out much to the rellief of hapless Delhiites who will no doubt heave a collective sigh of relief for their deliverance from the dreaded vehicles. The Delhi government yesterday signed a memorandum of understanding (MoU) with Star Bus Pvt Limited on the first of the 16 clusters, which the city's bus service has been divided into.

The new corporatised fleet, which will replace the Blueline, and will start operations in the capital by October this year given the lead time for procurement of the buses. However, the actual phasing out of the existing fleet could take some more time with the process under stay by a high court order.

Transport commissioner R K Verma yesterday signed the MoU with Ajay Singh, managing director, Spice Jet, who is also the chairman of Star Bus. The firm has given a Rs5-crore bank guarantee to the Delhi government for the project.

According to unnamed sources quoted by The Economic Times newspaper, the signing of the MoU was being delayed as the original stakeholders in Star Bus, the lowest bidder for the cluster were unable to arrange the funding due to recessionary market conditions.

Singh now holds a 49-per cent stake in the firm in which he infused Rs200 crore and with this, things have started looking up, the report quotes the sources as saying.

Singh said the government was negotiating with Tata Motors and Ashok Leyland  for the purchase of low-floor buses. He added that from October, about 40 buses would be introduced every month.